The problem
US carmaker Ford Motor is putting Land Rover and Jaguar up for sale, two of Britain's most well-loved marques. How does a manufacturer balance its commercial imperative and the inevitable emotional and political responses at both national and local levels that will ensue from disposing of famous names? The issue is heightened by the fact that the likeliest potential buyer is the new buy-out bogeyman, a private equity bidder.
The advice
Alan Middleton
The issue is not whether Ford should sell, but how quickly it can. It needs to devote management effort and resources on its very survival. It must be as ruthless as BMW was when it sold Land Rover to Ford. But who will buy these brands? The ideal partners, such as Volkswagen, appear to be uninterested. China or Saudi Arabia are outside bets, but it is too early in their evolution to lead such specialised brands. That leaves private equity houses, currently the whipping boys of the UK government and media. But private equity investment is not necessarily a bad thing, with its emphasis on cost control and results.
Money is only part of the answer. What these two marques need is committed leadership with a strong vision, as well as a big auto manufacturing partner to share expertise. Any equity house will need to satisfy both requirements.
The writer is CEO-elect of PA Consulting Group
